Net (Loss) Income Per Common Share

3 Months Ended

Mar. 31, 2015

Earnings Per Share [Abstract]

Net (Loss) Income Per Common Share

(8) Net (Loss) Income Per Common Share

The calculation of basic and diluted (loss) per common and common equivalent share is as follows (in thousands except for per share data):

	Three Months Ended March 31,
	2015			2014
Basic income per common share
Net (loss) income	$	(692	)	$	152
Less: Preferred stock dividends		—			(7	)
Net (loss) income applicable to common stock	$	(692	)	$	145
Basic weighted average number of common shares outstanding		10,752			11,739
Basic net (loss) income per common share	$	(0.06	)	$	0.01
Diluted (loss) income per common share
Net income applicable to common stock	$	(692	)	$	145
Add: Preferred stock dividends		—			7
Less: Fair value of stock warrants for dilutive warrants		—			(309	)
Net (loss) applicable to dilutive common stock	$	(692	)	$	(157	)
Basic weighted average number of common shares outstanding		10,752			11,739
Effect of dilutive securities
Dilutive stock awards		—			25
		—			25
Diluted weighted average number of common shares outstanding		10,752			11,764
Diluted net (loss) per common share	$	(0.06	)	$	(0.01	)

Basic (loss) income per common share is computed by dividing the net income, less preferred dividends by the weighted-average number of shares of common stock outstanding during a period. The diluted loss per common share calculation gives effect to dilutive options, warrants, convertible notes, convertible preferred stock, and other potential dilutive common stock including selected restricted shares of common stock outstanding during the period. Diluted loss per share is based on the treasury stock method and includes the effect from potential issuance of common stock, such as shares issuable pursuant to the exercise of stock options, assuming the exercise of all in-the-money stock options. Common share equivalents have been excluded where their inclusion would be anti-dilutive.

Shares to be issued upon the exercise of the outstanding options and warrants, convertible preferred stock and selected restricted shares of common stock excluded from the income per share calculation amounted to 2.2 million and 1.8 million in each of the three month periods ended March 31, 2015 and 2014, respectively, because the awards were anti-dilutive.